Deadfreight

Igor Sterzhantov2012


Page 1


Deadfreight
By Igor Sterzhantov2012
www.lawandsea.net

Deadfreight ................................................................................................................................................... 1
Introduction .............................................................................................................................................. 1
Full cargo and full loading capacity ........................................................................................................... 1
Implied liberty ........................................................................................................................................... 2
Deadfreight and demurrage ...................................................................................................................... 2

Introduction
Freight is primary payment obligation arising under a voyage charter which represents a fixed price for
carriage of a certain quantity of particular cargo on a particular voyage.
The monetary value of freight directly depends on the quantity of the goods loaded by the charterer
and then delivered in undamaged state by the shipowner to the consignee or receiver. It follows
therefore that when the charterer without lawful excuse ships a quantity of goods less than that
required by the charterparty
1
then the charterer is liable to the shipowner for the difference between
the freight actually earned being calculated on actually supplied quantity of goods and the freight
which would have been earned if the charterer had fulfilled his obligation to load the cargo in full. !uch
measure of damages claimed for breach of contract by a charterer to furnish a full cargo to a ship
2
is
"nown as deadfreight.
The charterers are ultimately liable for deadfreight resulted from bad stowing if under the charterparty
they underta"e the duty of stowing the cargo notwithstanding the master#s duty to supervise stowage
because as $reer % held it was not a question of whose servant the stevedore was but who under the
charterparty undertoo" the duty of stowing the cargo
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. !ee also &'oyage (harterparty. (harterer#s
Duties) *bligation to load and later to discharge the goods+
Full cargo and full loading capacity
Dead freight means the damage caused by the failure to furnish a full cargo in accordance with the
contract not merely that caused by the ship not being in fact fully loaded. In other words deadfreight
accrues only when quantity stated in contract was not supplied which signifies a breach of contract and
not when the vessel loaded cargo as per contract but less than her full capacity.
The obligation , to pay deadfreight is only triggered in the event that the (harterer fails to
supply a full cargo. Deadfreight is traditionally described as the name given to liquidated
damages claimed for a charterer#s breach of contract to furnish a full cargo to a ship in
accordance with the charter- , .ccordingly where as here there was a tender of full

1
*r if the goods shipped are not in accordance with the charterparty see /oung v (anning %arrah Timber (o 0td
&1122+ 3 (om (as 24
2
5c0ean v Fleming &1161+ 0.7. 2 !c. 8 Div. 121
9
:rys 8 $ylsen v Drysdale &122;+ 3 01.0.7. 23
Deadfreight
Igor Sterzhantov2012


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contractual performance by the (harterer there can have been no failure to supply and
therefore no obligation to pay deadfreight
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.
In some instances it can happen that the vessel#s full capacity is utilised but not full cargo loaded. For
example in Akties Steam v Arcos Ltd &1299+ 36 0l 0 7ep 1<2 11 .sp 50( 3;2 (. case the cargo loaded
was covered with ice and snow so that its bul" has been increased and the quantity which the ship
could carry should be accordingly reduced. It was held that the shipowner is was entitled to dead freight
in respect of the reduction in her carrying capacity so caused.
Implied liberty
The owner by implication is at liberty if acting reasonably not only to fill up the space left vacant due to
the charterer#s failure to provide full cargo but also to delay the charter voyage by the period of time
reasonably and necessarily occupied in ta"ing in that substituted cargo
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. :asis for this implication is an
assumption that the carrying out of such an action is for the benefit of the charterer because it goes to
diminish the damages that the charterer will be liable for
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.
Deadfreight and demurrage
If the charterer is unable to load a full contracted cargo during agreed laydays then he is liable to pay
damages in the nature of deadfreight as well as demurrage for delays sustained.
7ead this article in full here)
http)==www.lawandsea.net=(>?'oy=(harterparty?'oyage?Deadfreight.html

3
>er $loster %. in .I( 0td v 5arine >ilot 0td &The .rchimidis+ @2;;6A BCD( 1112 &(omm+
<
>er 5acEinnon % in Callems 7ederiF .=! v CD 5uller 8 (o :atavia &The !torvi"en +@1226A .ll B7 7ep 942 at p.962
4
Ibid